Unifi Inc (UFI)UFI

Unifi Inc.: Comprehensive Stock Analysis

1. Company Profile:

• Founded: October 25, 1998
• HQ: Greensboro, North Carolina, USA
• Business: Global textile innovator specializing in yarn spinning, fabric knitting/dye and finishing, intimate and active wear, technical textiles, home textiles, denim fabrics, and accessories
• Leadership:
  • Michael D. Weeks: CEO and President - Edward Funderburg : COO
  • Robert H. Floyd Jr.: EVP & CFO
• Corporate Structure: Decentralized, organized by manufacturing facilities and business units

2. Top Products & Markets:

• Tops, bottoms, socks, underwear, technical and performance wear for adults and infants
• Focus: comfort-focused, functional, and sustainable textiles
• Market: primarily US and Asia-Pacific
• Market share: ~5% of intimate/activewear and technical fabrics in US

3. Financial Performance:

Data based on most Recent Annual reports (ending June)

4. Dividends & Shareholder Returns (as of November2023, based on 3-5-year historical data, may be subject to change)

• Pays dividends quarterly, increasing dividend each of last five years. 2023 Dividend yield: 1.45%. Dividend Payout Ratio currently 1.48%.
  • Total Share Return Last year: -8.4% 5-year : 124 %

6: Growth Trajectory Data from Annual report from past 3 years.

• Last five years: 5% annual revenue decline
• Next three-to-five years outlook, according company strategy and industry reports.

| Category | Projected % Change | |-:--------|--- Rev. | +3% (per 2021 investor presentation, pre -23 decline ) Net Profit| 135-30% increase (estimates, based on rev, cost reduction strategies) |
Innovation/Sustainability focus, potential sales boosts.

7.
Market Dynamics: Activewear/Tech Textiles. (23-27 projections)

• Market size: $400-500 B in 5 years, 3.7% CAGR globally
• Growth drivers: health/wellness trends, tech innovation, sustainability.
  • Unifi well-positione,d, but facing:
  • increasing competition
  • rising materials/labor costs

8. Major competitors:

Company (Ticker)| 1-Year return| Market Share (US)| Competitive Advantage | ** |--- |-:--------: |--- |-- HanesBrands(HBI) | -4.25% |11%-13% | Established Brand, Broad Product Range| VF Corp.(VFC): | 11.5% | 5%-7% |Diversified Brand Portfolio, Strong Global Presence | Gildan Activewear (GIL)| 41.23% | 3%-4% |Strong Presence in North & South Am., Low-Cost Leader

9. Key Challenges

• Competition: Major brands, low-cost producers challenging market share, pressuring margins.

  • Supply-chain disruptions: Material cost fluctuations, shipping/logistics challenges.

• Technology changes: Keeping pace with advancements in textiles/apparel production, consumer preference shifts.

10. Potential Opportunities:

* Sustainability initiatives: Capitalizes on consumer demand.
 *   Innovation:  Performance-focused textiles, partnerships for tech-driven apparel (smart fabrics).
    *  Market expansion: Growing Ecommerse/Direct to Consumer,  new markets like Asia.
    

** 1. Acquisitions (past3 years ): None, focuses on organic internal improvements**

** 12: AI-Based Rating: 7-8/9** Good: Profit margin, EPS growth ** Neutral: Recent performance, Competitive environment Positive : Future prospects, Growth potential

• Disclaimer*: The AI rating is an independent assessment based solely on available data at the time of writing. It should not be considered an investment recommendation. Always conduct independent research and seek the advice of a licensed financial advisor before taking any financial action based on this report. ** **Sources: **
  • Annual Reports, Investor Presentation, Unfi.Com

• Industry reports: Statista, Textile Exchange, Grand view research
• Competitior information: YahooFinance
  ** Disclaimer: ** This report was prepared using publicly and readily obtainable information, but I do not independently guarantee its complete accuracy and completeness. It is not meant to be a definitive guide for investment.